IGO LIMITED — Interim / Quarterly Report 2017

Oct 25, 2016

PERIOD ENDED 30 SEPTEMBER 2016

QUARTER HIGHLIGHTS

Operations

• Nova construction was completed and ore commissioning commenced on 14 October 2016, approximately four weeks ahead of the feasibility study schedule. First production of nickel and copper concentrates at Nova was announced on 26 October 2016.

• Tropicana gold production was in line with guidance and both cash costs and all-in sustaining costs were better than forecast.

• Tropicana expansion project was completed and a 7.5Mtpa annualised processing throughput rate is expected from the December 2016 quarter.

• Long nickel production and cash costs were better than guidance range.

• Jaguar zinc production was within guidance, while both copper production and cash costs were better than forecast.

Financial

• Unaudited underlying EBITDA of A$39 million and unaudited NPAT of A$10 million.

• Balance sheet remains strong with net debt of A$22 million and A$279 million of undrawn debt facilities.

Corporate

• Successful completion of equity placement to raise net proceeds of A$274 million.

• Strategic positioning in the Fraser Range, near the Nova Project, enhanced through an agreed joint venture with Buxton Resources Limited and recommended acquisition agreed with Windward Resources Limited.

Peter Bradford, Managing Director and CEO of IGO said:

“This was an excellent Quarter for IGO with all mines delivering at or better than guidance.

Importantly we have made excellent progress at the Nova Project resulting in the completion of construction and commencement of ore commissioning some four weeks ahead of plan on 14 October 2016. In addition, we today announced that we had produced our first nickel and copper concentrates. These achievements are a tribute to the team of IGO personnel and contractors at Nova who have worked tirelessly.

In addition, at Tropicana our investments to expand the processing capacity and to extend the mine life are well advanced and we expect to realise the benefits of this in the December 2016 quarter.

We are approaching a very exciting time for IGO with a number of major value catalysts ahead.”

PAGE 1

==> picture [596 x 84] intentionally omitted <==

FINANCIAL AND CORPORATE

Total revenue for the Quarter was A$94.8 million, an 11% decrease on the June 2016 quarter, which was primarily a result of timing of shipments resulting in lower Jaguar zinc revenue. In addition, gold sales volume from Tropicana was lower due to timing resulting in a build-up of gold doré on site at Quarter end.

				Q1 FY16
	Units	Q1 FY17	Q4 FY16
Financials (unaudited)
Revenue	A$M	94.8	105.9	124.2
Underlying EBITDA	A$M	38.1	39.2	39.5
Profit (Loss) After Tax	A$M	10.1	16.5	(49.9)
Cash and refined bullion	A$M	249.3	46.3	131.5
Debt	A$M	271.0	271.0	200.3
Net Cash from Operating Activities	A$M	6.8	42.9	33.0

Underlying EBITDA for the Quarter was A$38.1 million (June 2016 quarter: A$39.2 million).

Cash from operating activities for the Quarter was A$6.8 million, compared to A$42.9 million for the June 2016 quarter. Key variances between underlying EBITDA and cash flow from operating activities relate to timing delays of cash receipts for September’s 2016 production received in October 2016:

	Units	Total Revenue	Underlying EBITDA	Operating Cash Flow
Tropicana	A$M	43.2	20.5	13.2
Long	A$M	19.6	10.4	9.7
Jaguar	A$M	30.8	16.5	(5.7)
New Business	A$M	n/a	(4.9)	(5.9)
Corporate & Other	A$M	0.3	(4.4)	(5.1)
Interest income	A$M	0.9	n/a	0.5
	A$M	94.8	38.1	6.8

In addition:

• Gold sales volume from Tropicana was lower due to a build-up of gold doré at Quarter end. Sales receipts from Tropicana were A$8.2 million lower due to 9% lower ounces sold. Cash outflows at Tropicana were higher as a result of working capital movements, two planned shutdowns (out of five for 2016) and higher plant maintenance costs due to the unplanned replacement of two mill gearboxes.

• Operating cash flow at Long increased by A$4.7 million to A$9.7 million.

• Jaguar cash from operating activities was negative A$5.7 million (June quarter: A$17.1 million). Timing differences include:

PAGE 2

==> picture [596 x 84] intentionally omitted <==

• The provisional payment of A$19.5 million for the 10kt September 2016 copper concentrate shipment was received in early October 2016. 10kt of copper concentrates was sold in each of the current Quarter and the previous quarter.

• The scheduled September 2016 10kt zinc shipment was delayed to early October 2016 as a result of a tidal surge delaying shipping at the Geraldton Port. Consequently, only 10kt of zinc concentrates was recorded in underlying EBITDA for the Quarter (20kt in the previous quarter).

• A$1.9 million higher corporate cash outflow due to working capital adjustments from the prior quarter.

Other cash flow variances include:

• Tropicana’s All-In Sustaining Costs (AISC) for the Quarter was A$1,097 per ounce sold. Based on attributable revenue of A$1,632 per ounce, this equates to a notional AISC margin of A$14.2 million whereas Tropicana’s free cash flow contribution was A$4.8 million. The following chart illustrates the key differences:

==> picture [397 x 219] intentionally omitted <==

• Gold doré inventory costs are those incurred costs that are deferred to the Company’s balance sheet until the gold doré is sold, at which point the costs will be recognised in the P&L and EBITDA. The cash expenditure of these costs occurs subsequently in accordance with normal supplier terms.

• Net finance costs of A$6.0 million during the Quarter compared to A$0.6 million in the June 2016 quarter. The variance is due to timing of facility charges on debt utilisations.

• Mine and Infrastructure Development was lower for the Quarter, with expenditure on the Nova Project reducing as processing plant construction neared completion. Cash expenditure during the Quarter on the development of Nova was A$45.1 million. Total capital cash expenditure to 30 September 2016 was A$347 million with an estimated A$95 - A$100 million remaining to be spent.

• Payments for mineral interests during the Quarter of A$1.5 million were in respect of the acquisition of a 90% interest in Buxton Resources Ltd’s Fraser Range tenements, as announced on 24 August 2016.

• The Company paid a fully franked dividend of 2 cents per share during the Quarter for a total of A$11.7 million in accordance with the Company’s stated dividend policy to pay 30% of NPAT as a dividend.

PAGE 3

==> picture [596 x 84] intentionally omitted <==

There were no further utilisations on the Company’s debt facility during the Quarter. The Company is currently in discussion with its lenders to assess options to cost effectively maximise flexibility under its A$550 million syndicated facility agreement. Consequently, debt is unchanged at Quarter end at A$271 million. Cash at bank was A$249.3 million and A$279 million of the Company’s facilities remain undrawn at Quarter end.

Cash Flow	Q1 FY17 (A$M)	Q4 FY16 (A$M)
Cash at beginning of Quarter	46.3	37.0
Tropicana Operations Free Cash Flow	4.8	16.2
Jaguar Operations Free Cash Flow	(10.8)	13.9
Long Operations Free Cash Flow	9.5	4.7
Nova Project Development	(45.1)	(62.8)
New Business and Exploration (greenfields & brownfields)	(6.3)	(4.1)
Corporate and Other Costs	(5.4)	(3.6)
Proceeds from Sale of Investments	1.5	16.0
Payments for Investments/Mineral Interests	(1.5)	(1.5)
Net Finance/Borrowing Costs	(6.0)	(0.5)
Debt Draw Downs	-	31.0
Capital Raising	281.5	-
Costs Associated with Capital Raising	(7.5)	-
Dividends Paid	(11.7)	-
Cash at end of Quarter	249.3	46.3

The Company placed no additional hedges during the Quarter. A summary of the Company’s hedge positions as at the date of this report is as follows:

Hedging	Units	FY17	FY18	FY19	TOTAL
Gold Collars	oz	5,000			5,000
Call price	A$/oz	1,603			1,603
Put price	A$/oz	1,330			1,330
Gold Par Forwards	oz	56,300	60,000	47,988	164,288
Price	A$/oz	1,653	1,796	1,859	1,766
Total Gold Hedging	oz	61,300	60,000	47,988	169,288
Diesel Par Forwards	L	6,837,000	9,912,000		16,749,000
Price	A$/L	0.41	0.45		0.43

Further information relating to the performance of the operations of IGO can be found in the Appendices of this report. In addition, the Company has uploaded onto its website, under Financial Reports, a soft copy of the operating summaries in Appendices 2, 3 and 4, titled Q1 FY17 Supplementary Information.

PAGE 4

==> picture [596 x 84] intentionally omitted <==

HEALTH, SAFETY AND THE ENVIRONMENT

Safety

No lost time injuries were recorded across the Company’s managed activities during the Quarter.

The lost time injury frequency per million hours worked for the 12 months ended 30 September 2016 was 2.42.

Environment

There were no material environmental incidents across our the Company’s managed activities during the Quarter.

TROPICANA JOINT VENTURE (TJV)

Open pit gold, north-east of Kalgoorlie, WA: IGO 30%, AngloGold Ashanti 70% (Manager)

Production

During the Quarter, a total of 7.4 million bank cubic metres of material was mined and hauled expit. This material comprised of 2.03Mt of full grade ore (>0.6g/t Au), 0.29Mt of marginal ore (grading between 0.4 & 0.6g/t Au) and 14.4Mt of waste material. Ore was sourced from the Havana Pit (1.65Mt), the Boston Shaker Pit (0.25Mt) and the Tropicana Pit (0.42Mt) with the average grade for full grade ore (>0.6g/t Au) being 2.11g/t Au for the Quarter.

A total of 1.69Mt of ore at an average grade of 2.06g/t Au was processed during the Quarter. Average metallurgical recovery was 89.5% for 100,038oz of gold produced. A full breakdown of production statistics is provided in Table 2 in Appendix 2.

				Q1 FY16
	Units	Q1 FY17	Q4 FY16
Tropicana
Gold production (100% basis)	ounces	100,038	95,133	118,204
Cash Cost	A$/oz	905	895	624
All in Sustaining Costs	A$/oz	1,097	1,135	798

The Quarter’s annualised throughput rate was 6.7Mtpa, however, during the Quarter throughput rates equivalent to an annualised throughput rate of 7.4Mtpa were achieved but this was offset by lower processing plant availability associated with the two planned shutdowns and the unplanned downtime to replace two mill gearboxes.

Attributable Production

IGO’s attributable gold production during the Quarter was 30,011oz and IGO’s attributable share of gold refined and sold was 26,473oz. IGO’s attributable average cash costs for the Quarter were A$905/oz gold produced and AISC were A$1,097/oz gold refined. Refer to Table 2 in Appendix 2 for further details.

PAGE 5

==> picture [596 x 84] intentionally omitted <==

Tropicana Optimisation Project

Commissioning of the two additional Carbon in Leach (CIL) tanks, which represents the final stage of the processing plant optimisation project, was completed in October 2016. The additional CIL tanks are required to maintain gold recovery at 90%, at the higher throughput rates.

LONG OPERATION

Underground nickel in Kambalda, WA: IGO 100%

Production

Production for the Quarter was 51,881t of ore mined at 4.19% Ni for 2,166t of contained nickel with the majority of ore being sourced from the Moran orebody. A full breakdown of production statistics is provided in Tables 3 and 4 in Appendix 3.

				Q1 FY16
	Units	Q1 FY17	Q4 FY16
Long
Contained nickel produced	tonnes	2,166	2,018	2,262
C1 cash costs	A$/lb	3.23	3.51	4.24

Average C1 cash costs, inclusive of royalties and net of by-product copper credits, were A$3.23/lb of payable nickel. This is 8% better than the previous quarter, reflecting the ongoing improvement in productivity at Long.

Development

A total of 173m was advanced by jumbo development during the Quarter.

Exploration

Exploration drilling recommenced during the Quarter with 1,237m of diamond drilling completed on the Victor West target.

JAGUAR OPERATION

Underground zinc-copper, north of Leonora, WA: IGO 100%

Mining

During the Quarter, mining delivered 129,821t of ore at 9.54% Zn, 1.77% Cu, 0.68% Pb, 146g/t Ag and 0.65g/t Au.

Processing Plant

Processing plant production was 121,453t of ore milled at head grades of 9.53% Zn and 1.82% Cu, 141g/t Ag and 0.63g/t Au, which resulted in production of 10,309t Zn and 1,887t Cu metal in concentrates. Further details of processing plant production in the Quarter are set out in Table 5 in Appendix 4.

PAGE 6

==> picture [596 x 84] intentionally omitted <==

				Q1 FY16
	Units	Q1 FY17	Q4 FY16
Jaguar
Contained zinc produced	tonnes	10,309	8,937	11,407
Contained copper produced	tonnes	1,887	3,235	1,429
C1 cash costs	A$/lb	0.52	0.02	0.65

Average C1 cash costs, inclusive of royalties and net of by-product credits, were A$0.52/lb of payable zinc for the Quarter, compared to A$0.02/lb in the June 2016 quarter. The higher cash cost number for the Quarter, compared to the previous quarter, was predominantly a result of lower by-product credits, in line with the expected lower copper production for the Quarter.

Concentrate

The processing plant produced 29,510t of concentrate during the Quarter, of which 21,769t was zinc concentrate and 7,741t was copper concentrate (See Table 5 in Appendix 4). Copper and zinc concentrates shipped during the Quarter were 11,000wmt and 11,220wmt respectively.

Mine Development

A total of 1,035m of advance occurred during the Quarter, of which 481m was capitalised, with the remainder accounted for in operating costs.

Jaguar Regional Exploration

Assay results were returned for the Wilson Creek aircore drilling completed in the previous quarter, interpretation is ongoing with two base metal anomalies and one gold anomaly delineated.

Diamond drilling at the Triumph Prospect will commence in the December 2016 quarter.

NOVA PROJECT

Fully funded underground nickel project in commissioning, east of Norseman, WA: IGO 100%

Project Progress

Good progress was achieved at Nova and the Project remains ahead of schedule and on budget relative to the Optimisation Study schedule and budget. Subsequent to the Quarter end, construction was completed on 10 October 2016 and ore commissioning commenced on 14 October 2016. First concentrate production was announced on 26 October 2016 and the current schedule indicates first concentrate shipments should commence during December 2016.

Total mine development of 7.75km had been completed by the end of the Quarter.

Underground development activity during the Quarter was focused on progressing capital development, and setting up initial operating development for the Nova Upper stope region. Additional work undertaken included installation of escape ways, work on the civil construction for the underground settle sumps and pump station, commencement of the No. 2 Fresh Air Raise (FAR2) pilot hole and reaming of the No. 2 Return Air Raise (RAR2) raise bore.

The first production stope was drilled, blasted and brought into production during September 2016, another major milestone for the Project.

PAGE 7

==> picture [596 x 84] intentionally omitted <==

Grade control drilling has continued with three drill rigs currently deployed and 29,024m of grade control drilling completed to date. Sufficient drilling has been completed to reconcile the resource model between the 2080mRL level and the 2030mRL level. Results to date, although only representative of a small proportion of the total resource, have been encouraging with positive nickel equivalent metal reconciliations when compared to the resource model.

Construction works were scaled down as areas of work were completed and commissioning commenced. The crushing and conveying section of the plant was successfully commissioned by the end of September 2016. Water commissioning of the concentrator was commenced and water commissioning of the paste plant was completed.

Commissioning of the power station was completed with load testing of the five 3.0MW GE diesel generating sets.

All non-process infrastructure is now complete and operational.

Guidance

First concentrate shipments are expected to commence during December 2016 and the underground mine is expected to ramp up to full production by mid CY17. The Project remains on budget.

Exploration

Completion of systematic data coverage over the Nova Mining Lease continued during the Quarter. A survey with a high power low noise super-conducting quantum interference device (SQUID) was completed over selected targets during the Quarter. The data has been received and will be reviewed in the coming weeks.

EXPLORATION AND DEVELOPMENT PROJECTS

Fraser Range/Tropicana Trend

Fraser Range Project (IGO 70% and Manager)

Exploration activities over the Fraser Range Project during the Quarter comprised continuation of an extensive moving loop electromagnetic (MLEM) survey over several prospects. Gravity surveys were completed within the tenement E28/2201, part of the Buxton Resources Joint Venture. The data will be used to assist in geological interpretation and target generation, with several prospects identified for field checking and first pass sampling in the December 2016 quarter.

Petrological and lithogeochemical sampling has been completed for numerous prospect areas with the aim of characterising their geological context and future prospectivity. Geological interpretation and target generation are ongoing.

To date, no bedrock conductors from the MLEM survey worthy of follow-up have been delineated.

Salt Creek JV (IGO 70% and Manager)

Following on from the regional aircore drilling completed in the June 2016 quarter, various prospects have been highlighted for MLEM survey. Regional detailed gravity surveying has been completed over the Rising Dragon prospect tenure and over newly granted tenure in the far north of the tenement package.

Exploration Incentive Scheme co-funded Reverse Circulation (RC) and diamond drilling was ongoing at the Rising Dragon prospect at the Quarter end. In total, six RC holes were drilled for 1,943m and three diamond tails. Diamond meterage was 727m, with the final hole still in progress

PAGE 8

==> picture [596 x 84] intentionally omitted <==

at the end of the Quarter. The zone of disseminated sulphide mineralisation at Rising Dragon was extended to the southeast for approximately 650m down plunge. Down hole electromagnetic testing was completed where possible, with no indication of massive sulphides within the mineralised system outlined to date.

A six-hole RC drill program was also underway at the Cobra prospect at the end of the Quarter with 238m of the first hole completed. The drilling is primarily focused on the ultramafic intrusive complex outlined by previous aircore drilling.

Geological interpretation and geochemical analyses will be completed during the December 2016 quarter which will guide the direction of future exploration at each prospect.

Lake Mackay Gold/Base Metals Project (IGO Manager and Option to earn 70%)

Infill soil sampling and minor rock chip sampling has been completed over six regional prospects. Two prospects were upgraded, one remains unchanged and three were downgraded.

MLEM surveying was completed over various soil geochemical anomalies, with seven conductors identified, four of which will be drill tested in the December 2016 quarter.

The Lake Mackay co-funded aeromagnetic survey has progressed well during the Quarter with 45,718 line-km completed which represents 88% of the 51,984 line-km planned. The data is currently being processed.

FY17 GUIDANCE

FY17 production, cash cost and capital expenditure guidance for all sites remains unchanged relative to the guidance provided in our ASX release of 27 July 2016.

FORWARD-LOOKING STATEMENTS

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Independence Group NL’s planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward-looking statements. Although Independence Group NL believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

COMPETENT PERSONS STATEMENTS

The information in this report that relates to Exploration Results (excluding Long exploration results) is based on information compiled by Mr. Matthew Dusci who is a full-time employee and security holder of the Company and is a member of the Australasian Institute of Mining and Metallurgy. Mr. Dusci has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Dusci consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further information contact:

Peter Bradford Joanne McDonald Managing Director Company Secretary Independence Group NL Independence Group NL Telephone: 08 9238 8300

PAGE 9

==> picture [596 x 84] intentionally omitted <==

APPENDICES

Financial Summary

Appendix 1

Table 1: Financial Summary

FINANCIAL SUMMARY (unaudited)	Q1 FY17 (A$M)	Q4 FY16 (A$M)	Q1 FY16 (A$M)
Total Revenue	94.8	105.9	124.2
Underlying EBITDA	38.1	39.2	39.5
Profit (Loss) After Tax	10.1	16.5	(49.9)
Net Cash Flow From Operating Activities	6.8	42.9	33.0
Cash Flows included in the above:
Net interest income	0.5	0.1	0.5
Exploration expenditure expensed	(4.9)	(3.6)	(8.2)
Net Cash Flow From Investing Activities	(65.7)	(64.8)	(218.5)
Cash Flows included in the above:
Capitalised borrowing costs	(6.5)	(0.6)	-
Mine and infrastructure development	(55.1)	(76.1)	(9.6)
Proceeds from sale of investments	1.5	16.0	1.0
Payments for investments/mineral interests	(1.5)	(1.5)	-
Exploration expenditure capitalised	(0.4)	-	(5.7)
Plant and equipment	(3.8)	(2.5)	(2.2)
Cash payment for Sirius Resources, net of cash acquired	-	-	(202.1)
Underlying Free Cash Flow	(60.5)	(36.3)	15.6
Net Cash Flow From Financing Activities	262.2	31.0	194.5
Cash Flows included in the above:
Net proceeds from borrowings	-	31.0	199.8
Facility arrangement fees	-	-	(5.3)
Proceeds from capital raising	281.5	-	-
Costs associated with capital raising	(7.5)	-	-
Dividends paid	(11.7)	-	-
Balance Sheet Items
Total Assets	2,270.0	2,007.4	1,929.7
Cash	249.3	46.3	131.3
Refined Bullion	-	-	0.2
Marketable Securities	5.6	5.0	15.7
Total Debt	271.0	271.0	200.3
Total Liabilities	540.3	551.6	453.5
Shareholders’ Equity	1,729.7	1,455.8	1,476.3
Net tangible assets per share (A$ per share)	2.95	2.85	2.89

PAGE 10

==> picture [596 x 84] intentionally omitted <==

Tropicana Production Summary

Appendix 2

Table 2: Tropicana Production Summary for the September 2016 Quarter	Table 2: Tropicana Production Summary for the September 2016 Quarter	Table 2: Tropicana Production Summary for the September 2016 Quarter	Table 2: Tropicana Production Summary for the September 2016 Quarter	Table 2: Tropicana Production Summary for the September 2016 Quarter	Table 2: Tropicana Production Summary for the September 2016 Quarter
TROPICANA JV OPERATION	Notes	Units	September 2016 Quarter	June 2016 Quarter	September 2015 Quarter
Safety:
Lost Time Injuries (No.)	1		0	0	0
Lost Time Injury Frequency (LTIF)			0.94	0.5	0.50
Production Details:100% JV Operation
Waste mined		‘000 dmt	14,417	14,441	13,168
Ore Mined (>0.4 and<0.6g/t Au)		‘000 dmt	293	168	197
Ore Mined (>0.6g/t Au)		‘000 dmt	2,034	1,298	1,850
Au Grade Mined (>0.6g/t Au)		g/t	2.11	2.10	2.19
Ore Milled		‘000 dmt	1,687	1,715	1,559
Au Grade Milled		g/t	2.06	1.93	2.66
Average metallurgical recovery		%	89.5	89.3	89.3
Gold recovered		oz	99,798	94,893	118,982
Gold-in-circuit adjustment		oz	240	240	(778)
Gold produced		oz	100,038	95,133	118,204
IGO 30% attributable share
Gold refined & sold	2	oz	26,473	29,254	36,341
Revenue/Expense Summary:IGO 30% share
Sales Revenue (incl. of credits)		A$'000	43,210	47,712	56,271
Cash Mining Costs		A$'000	(11,817)	(12,139)	(12,861)
Cash Processing Costs		A$'000	(13,550)	(11,471)	(10,816)
Gold production inventory adjustments		A$'000	2,373	2,252	6,506
Gold sales inventory adjustments		A$'000	4,661	(839)	(996)
Other Cash Costs	3	A$'000	(3,334)	(3,191)	(3,776)
State government royalties		A$'000	(1,136)	(1,248)	(1,390)
By-product credits		A$'000	312	249	215
Exploration & feasibility costs (non-sustaining)		A$'000	(1,602)	(1,765)	(2,503)
Exploration & feasibility costs (sustaining)		A$'000	(119)	(62)	(280)
Sustaining Capital		A$'000	(500)	(938)	(814)
Improvement Capital		A$'000	(3,078)	(3,886)	0
Capitalised stripping asset		A$'000	(5,274)	(5,138)	(4,200)
Rehabilitation–accretion & amortisation		A$'000	(663)	(668)	(572)
Depreciation/Amortisation		A$'000	(12,810)	(10,310)	(13,122)
Unit Cash Costs Summary: IGO 30% share
Mining & Processing Costs		A$/oz	845	827	668
Gold production inventory adjustments		A$/oz	(79)	(79)	(183)
Other Cash Costs		A$/oz	149	156	146
By-product credits		A$/oz	(10)	(9)	(6)
Cash costs		A$/oz	905	895	624
Unit AISC Summary:IGO 30% share
Cash costs		A$/oz	850	902	636
Sustaining Capital		A$/oz	19	32	22
Capitalised sustaining stripping & other mine costs		A$/oz	199	176	116
Exploration & feasibility costs (sustaining)		A$/oz	5	2	8
Rehabilitation–accretion & amortisation		A$/oz	25	23	16
All-in Sustaining Costs	4	A$/oz	1,097	1,135	798

Note 1: LTIF is a 12 month moving average per million hours worked.

Note 2: Attributable share includes sales on a revenue basis, excludes gold-in-transit to refinery.

Note 3: Other Cash Costs include costs relating to site management, administration and support services, environmental & sustainability costs.

Note 4: The World Gold Council encourages gold mining companies to report an All-in Sustaining Costs metric. The publication was released via press release on 27h June 2013 and is available from the Council’s website.

PAGE 11

==> picture [596 x 84] intentionally omitted <==

Long Operation Production Summary

Appendix 3

Table 3: Long Operation Production Summary for the September 2016 Quarter

LONG OPERATION	**Notes **	Units	September 2016 Quarter	June 2016 Quarter	September 2015 Quarter
Safety:
Lost Time Injuries (No.)		#	0	0	1
Lost Time Injury Frequency (LTIF)	1		0.00	5.28	3.25
Production:
Ore Mined	2	dmt	51,881	50,167	66,315
Reserve Depletion	3	dmt	35,502	40,212	43,210
Ore Milled		dmt	51,881	50,167	66,315
Nickel Grade		%	4.19	4.02	3.41
Copper Grade		%	0.29	0.28	0.25
Metal in Ore Production
Nickel		t	2,166	2,018	2,262
Copper		t	149	141	164
Metal Payable(IGO’s share):
Nickel	4	t	1,309	1,220	1,358
Copper	4	t	60	57	66
Revenue/Expense Summary:
Sales Revenue (incl. hedging & credits)		A$'000	19,574	16,950	19,084
Cash Mining Costs		A$'000	(5,595)	(5,897)	(7,148)
Other Cash Costs	5	A$'000	(4,089)	(3,932)	(5,973)
Copper credits		A$'000	371	376	456
Exploration		A$'000	(308)	(2)	(4,810)
Mine Development		A$'000	0	0	(69)
Plant & Equipment		A$'000	(63)	(302)	(562)
Depreciation/Amortisation		A$'000	(5,155)	(5,493)	(4,045)
Cost /lb Total Ni Metal Produced
Cash Mining Costs		A$/lb	1.17	1.33	1.43
Other Cash Costs	5	A$/lb	0.86	0.88	1.20
Copper Credit		A$/lb	(0.08)	(0.08)	(0.09)
Ni C1 Costs & Royalties		A$/lb	1.95	2.13	2.54
Exploration, Development, P&E		A$/lb	0.08	0.07	1.09
Depreciation/Amortisation		A$/lb	1.08	1.23	0.81
Cost /lb Total Ni Metal Payable
Cash Mining Costs		A$/lb	1.94	2.19	2.39
Other Cash Costs	5	A$/lb	1.42	1.46	2.00
Copper Credit		A$/lb	(0.13)	(0.14)	(0.15)
Ni C1 Cash Costs& Royalties	6	A$/lb	3.23	3.51	4.24
Exploration, Development, P&E		A$/lb	0.13	0.11	1.82
Depreciation/Amortisation		A$/lb	1.79	2.04	1.35

• Note 1: LTIF is a 12 month moving average per million hours worked.

• Note 2. Production is sourced from both inside and outside reserve.

• Note 3: Reserve depletion equals production from within reserves base.

• Note 4: Payable metal is a function of recovery from concentrate smelting and refinery and is costed under a BHPB Nickel West contract.

• Note 5: Other Cash Costs include milling, royalties and site administration costs.

• Note 6: C1 Cash Costs include the costs of mining, milling, onsite general administration expenses and royalties, less the net value of copper by-product credits for the Quarter.

Table 4: Long Operation: production sources in the September 2016 Quarter (see Table 3 above for further detail)

Long	4,414t @ 2.25% Ni for 99t Ni
Victor South	204t @ 2.43% Ni for 5t Ni
Moran	47,262t @ 4.38% Ni for 2,063t Ni
TOTAL	51,881t @ 4.19% Ni for 2,166t Ni

PAGE 12

==> picture [596 x 84] intentionally omitted <==

Jaguar Operation Production Summary

Appendix 4

Table 5: Jaguar Operation Production Summary for the September 2016 Quarter

JAGUAR OPERATION	Notes	Units	September 2016 Quarter	June 2016 Quarter	September 2015 Quarter
Safety:
Lost Time Injuries (No.)			0	0	0
Lost Time Injury Frequency (LTIF)	1		5.34	5.02	3.22
Production Details:
Ore Mined	2	dmt	129,821	117,337	120,157
Reserve Depletion	3	dmt	99,362	117,316	105,780
Ore Milled		dmt	121,453	122,332	123,550
Zinc Grade		%	9.53	8.61	10.41
Copper Grade		%	1.82	2.88	1.41
Silver Grade		g/t	141	142	142
Gold Grade		g/t	0.63	0.87	0.78
Concentrate Production
Copper concentrate		dmt	7,741	12,370	5,481
Zinc concentrate		dmt	21,769	19,192	24,224
Zinc recovery		%	89.1	84.9	88.8
Copper recovery		%	85.3	91.8	82.0
Metal inConcentrate:	4
Copper		t	1,887	3,235	1,429
Zinc		t	10,309	8,937	11,407
Silver		oz	436,755	458,353	430,369
Gold		oz	1,032	1,396	1,316
Metal Payable inConcentrate:	4
Copper		t	1,810	3,111	1,374
Zinc		t	8,568	7,402	9,472
Silver		oz	292,620	327,474	281,476
Gold		oz	949	1,277	1,237
Revenue/Expense Summary:
Sales Revenue (incl. hedging, TC’s/ RC’s, credits)		A$'000	30,830	39,922	46,279
Cash Mining Costs		A$'000	(7,121)	(6,649)	(6,940)
Cash Processing Costs		A$'000	(5,844)	(4,974)	(6,278)
Other Site Costs		A$'000	(5,012)	(4,467)	(4,170)
Trucking & Wharfage		A$'000	(2,635)	(3,159)	(3,928)
Shipping		A$'000	(535)	(858)	(1,726)
Royalties		A$'000	(1,869)	(945)	(1,825)
Exploration		A$'000	(424)	(894)	(2,606)
Mine Development		A$'000	(2,283)	(2,697)	(5,883)
Plant & Equipment		A$'000	(2,811)	(456)	(427)
Depreciation/Amortisation		A$'000	(5,978)	(6,721)	(5,899)
Notional Cost /lb Total Zn Metal Produced
Mining Costs		A$/lb	0.31	0.34	0.28
Processing Costs		A$/lb	0.26	0.25	0.25
Other Cash Costs	5	A$/lb	0.77	0.91	0.72
Copper, Silver and Gold credits		A$/lb	(0.91)	(1.49)	(0.71)
Zn C1 Costs & Royalties	6	A$/lb	0.43	0.02	0.54
Exploration, Development, P&E		A$/lb	0.24	0.21	0.35
Depreciation/Amortisation		A$/lb	0.26	0.34	0.23
Notional Cost /lb Total Zn Metal Payable
Mining Costs		A$/lb	0.38	0.41	0.33
Processing Costs		A$/lb	0.31	0.30	0.30
Other Cash Costs	5	A$/lb	0.92	1.10	0.87
Copper, Silver and Gold credits		A$/lb	(1.09)	(1.80)	(0.85)
ZnC1 Cash Costs & Royalties	6	A$/lb	0.52	0.02	0.65
Exploration, Development, P&E		A$/lb	0.29	0.25	0.43
Depreciation/Amortisation		A$/lb	0.32	0.41	0.28

Note 1: LTIF is a 12 month moving average per million hours worked. Note 2: Total mined ore, from inside and outside of reserves. Note 3: Reserve depletion equals production from within reserves base. Note 4: Payable metal is a function of recovery from concentrate, smelting and refinery, controlled by sales contracts. Note 5: Other Cash Costs include, actual maintenance & site administration costs, notional trucking, notional TCs & RCs, notional wharfage, shipping and notional royalties.

Note 6: C1 Cash Costs include credits for copper, silver and gold notionally priced at US$2.15 per pound, US$16.92 per ounce and US$1,261 per ounce for the Quarter respectively.

PAGE 13